Pakistan and the Asian Development Bank (ADB) have signed financing agreements worth $730 million to support two major development projects aimed at improving the country’s power transmission system and accelerating reforms in state-owned enterprises (SOEs).
According to the Economic Affairs Division, the agreements include $330 million for the Second Power Transmission Strengthening Project and $400 million for the Accelerating State-Owned Enterprise Transformation Programme.
Both initiatives are designed to address long-standing structural challenges and support sustainable economic growth.
Officials stated that the power transmission project will enable the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects.
It will also help reduce pressure on existing transmission lines and improve the resilience of the national grid during emergency or contingency situations.
The project is expected to play a key role in strengthening Pakistan’s energy infrastructure and enhancing long-term energy security.
Secretary Ministry of Economic Affairs, Muhammad Humair Karim, acknowledged ADB as a key development partner of Pakistan.
He said the project would reinforce the backbone of the national power grid and support the country’s growing energy needs.
On the reform front, Karim noted that the SOE Transformation Programme would support the implementation of the SOE Act 2023 and the SOE Policy 2023.
The programme aims to improve efficiency, transparency, and governance in state-owned enterprises, with a special focus on the National Highway Authority.
ADB Country Director Emma Fan welcomed the government’s commitment, stating that the transmission investment is critical for strengthening Pakistan’s energy system.
She added that the SOE reform programme comes at an important time and will support ongoing reform efforts.
Both sides reaffirmed their commitment to effective use of funds and timely completion of the projects.